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Healthcare Losses Hits $50M-plus

March 14, 2012

As healthcare quality and patient safety measures improve, medical malpractice losses are likewise on a steady climb, reports stated.

Hiscox, a specialty healthcare insurance company from Bermuda, issued the statement.

The company created the study from its private claims and risk submissions data. Hiscox pointed out that even though there are a lot healthcare companies acquiring small losses, the number of similar organizations losing moderate amounts is getting higher. Such issue may lead to bigger problems, like insufficient staff in nursing homes or carelessness in medical institutions, Hiscox said further.

In 2011, seven U.S. states reported their by-far largest awards on medical malpractice. In fact, the healthcare industry reportedly lost over $1 billion due to such liabilities, from March 2012 to date.

The company further stated that even though there would be cases of appeals, it is obvious that the amount lost on awards is still rising.Hiscox Senior Vice President for Healthcare Ian Thompson recalled a particular case in Maryland where there is an existing probe on over-stenting. He added that batch losses are getting bigger and more recurrent.

Statistics provided by Hiscox confirm that in the past five years, the largest healthcare claims are nearly paid. The study also exposed that in 2000, there is a 0.25% increase on liabilities, which were more than $5 million. Now it is by 0.7% and by 2014, is expected to reach 1.0%.

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